EUR/JPY trades higher around 165.00 on risk-on sentiment despite dovish ECB

Source Fxstreet
Apr 22, 2024 09:26
  • EUR/JPY extends gains on improved risk sentiment due to the de-escalated tensions between Israel and Iran.
  • ECB’s Villeroy said that Middle East situation is unlikely to impact the central bank’s intention of rate cuts in June.
  • BoJ Governor Kazuo Ueda advocated maintaining the loose monetary policy.

EUR/JPY traded on a stronger note around 164.90 during the early Asian session on Monday. However, the European Central Bank (ECB) will commence interest rate cuts in June, driven by a tepid Eurozone economic outlook and moderating core inflationary pressures. The ECB has conveyed a clear message to markets, suggesting that an interest rate cut could be imminent if significant developments don't occur.

As Reuters reported on Sunday, François Villeroy de Galhau, the governor of the Bank of France, said that the tension in the Middle East is not expected to lead to a significant increase in energy prices, and as a result, it is unlikely to impact the European Central Bank's intention to commence interest rate cuts in June.

The Japanese Yen (JPY) encounters challenges amid a resurgence in risk-on sentiment, with no notable geopolitical developments emerging over the weekend. Antony Blinken, the US Secretary of State, called for restraint following comments from an Iranian official indicating no immediate plans for retaliation against the reported Israeli missile strike. Blinken's statements came after the G7 meeting of foreign ministers in Capri, Italy, as reported by "The Guardian."

Furthermore, Bank of Japan (BoJ) Governor Kazuo Ueda made dovish remarks during a seminar hosted by the Peterson Institute for International Economics on Friday, according to Reuters. Ueda emphasized the necessity for the BoJ to maintain accommodative monetary policies in the foreseeable future due to underlying inflation remaining "somewhat below" the 2% target, with long-term inflation expectations hovering around 1.5%.

EUR/JPY

Overview
Today last price 164.95
Today Daily Change 0.20
Today Daily Change % 0.12
Today daily open 164.75
 
Trends
Daily SMA20 164.07
Daily SMA50 163.09
Daily SMA100 160.76
Daily SMA200 159.7
 
Levels
Previous Daily High 165.03
Previous Daily Low 163.02
Previous Weekly High 165.03
Previous Weekly Low 162.67
Previous Monthly High 165.36
Previous Monthly Low 160.22
Daily Fibonacci 38.2% 164.26
Daily Fibonacci 61.8% 163.79
Daily Pivot Point S1 163.5
Daily Pivot Point S2 162.26
Daily Pivot Point S3 161.5
Daily Pivot Point R1 165.51
Daily Pivot Point R2 166.27
Daily Pivot Point R3 167.52

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
EUR/GBP Price Analysis: Trading back inside medium-term rangeEUR/GBP has fallen back inside its multi-month range after temporarily breaking out to the upside on May 7.
Source  Fxstreet
EUR/GBP has fallen back inside its multi-month range after temporarily breaking out to the upside on May 7.
placeholder
Pound Sterling steadies after mixed UK Employment reportThe Pound Sterling (GBP) remains in a confined range of around 1.2560 in Tuesday’s London session as investors take time to analyse the United Kingdom Employment data for three months ending in March.
Source  Fxstreet
The Pound Sterling (GBP) remains in a confined range of around 1.2560 in Tuesday’s London session as investors take time to analyse the United Kingdom Employment data for three months ending in March.
placeholder
USD/CAD holds above 1.3650 ahead of US PPI dataThe USD/CAD pair trades on a stronger note around 1.3675 during the Asian session on Tuesday.
Source  Fxstreet
The USD/CAD pair trades on a stronger note around 1.3675 during the Asian session on Tuesday.
goTop
quote